CE Market Set To Finish Year In Decline Despite Lift Following Election.
A GFK Temax report they said that the under-performing CE categories are beginning to recover, and previously high-growth categories are beginning to mature and plateau.
This has been attributed to a change to a Coalition Government led by Tony Abbott in September that has led to a significant increase in consumer sentiment during the quarter.
On the upside the major domestic appliances market grew 3.6%, however a prior surge in telecom sales spanning smartphones and tablets has seen a decline with the category only achieving moderate 2.9% growth in Q3.
The continuation of very mild winter weather resulted in a 1.9% decline for small domestic appliances (SDA), while IT, consumer electronics and photo experienced some recovery from quarter 2 levels, reporting declines of 3.5%, 7.5% and 11.9%, respectively.
A lull between new model launches and a raft of new smartphone model releases in quarter 2 led to a surge in value growth for the telecom sector. Quarter 3 growth was modest, as consumers waited for new model releases in September.
GFK Said that quarter 3 was the first quiet period “for some time”.
Volumes of smart-mobile phones have experienced a prolonged period of decline. However, with further growth in outright purchases (i.e. products that are not locked-in to a carrier) and a stabilisation of the prepaid segment, volumes have begun to bounce back.
Tablets have been patchy with the segment reporting its first value decline in quarter 2, despite continued, significant, volume growth.
During quarter 3, rates of volume growth remained at similar levels to Q2, but the product mix within the segment shifted just enough to lead to a very modest return to value growth.
The rate of decline of mobile computers slowed dramatically, compared to Q2. The segment also experienced an increase in average selling prices since quarter 3, 2012, due to the popularity of higher-priced, newer form factors.
GFK said that there has been a marked slowdown in value decline for the TV segment, which still accounts for over 60% of the consumer electronics ‘sector value.
Volume declines remain in double digits, but due to an overall increase in average price, the year-on-year value trend for TVs is beginning to flatten out.
The continued move towards larger screen sizes has been the main driver of the average price increases. Consumers are shifting from 46″to 50″, and from 55″to 60+”televisions.
Almost all other consumer electronics segments remain in decline. The exception was soundbars that fuelled growth within the home theatre systems sub-segment, which in turn is supporting the recovery of the audio segment.
GFK said that rends likely to continue into quarter 4.
Another boost in the value of smart-mobile phones, the continued recovery of the consumer electronics sector, and the popularity of tablets and small domestic appliance segments on the run-up to Christmas should lead to a relatively stable performance for the TCG industry in the final quarter.
Overall, full-year 2013 results are likely to reflect the trend to-date; that is, a year-on-year value decline of 1 to 2%.